Overview of New Zealand as a trade dependent economy

New Zealand is a trade dependent economy which is completely different from export markets, as this country provides maximum support to the free and open trade. This country got the one of the biggest open market economies in the world (NZ foreign affairs & trade, n.d.).

The Trans-Pacific Partnership (TPP) is an agreement which is secretive and ensures multinational trade. TPP mainly exposed to spread the preventive intellectual property (IP) laws across the globe. In other words, TPP is an agreement which mainly helps in liberalizing the trade   between the 12 Pacific-rim countries. These countries are New Zealand, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, the United States and Viet Nam (NZ foreign affairs & trade, nd.).

This agreement is signed on February 2016 and it is ratified in May 2017 by the New Zealand which is also the depository for the TPP. It must be noted that this agreement is also ratified by Japan. However, this agreement cannot be enforced till the time it is ratified by other four countries which also includes United States. Notification is send by the US that it does not intend to become the party of TPP (BBC, 2013).

After the withdrawal of US, ministers of other 11 countries confirm the importance of the TPP in context of economic and strategic approach. Negotiations related to this agreement are concluded on 23^rd January 2018 on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

CPTPP is the agreement which is based on the Trans Pacific Partnership (TPP), and this agreement is signed in February 2016 but never enforced because of the withdrawal of the US. This new agreement includes different elements of TPP that were negotiated as part of TPP butt there are some important differences (Electronic Frontier Foundation, n.d.).

Partnership with other countries provide large number of opportunities for New Zealand, and this agreement help the NZ to expand their activities in new destinations of exports in context of their business. This agreement also help by creating the jobs and result in better standard of living for all the citizens of NZ. At same time, it protects the right of government to regulate in the public interest and the unique status of the Treaty of Waitangi (NZ foreign affairs & trade, nd.).

This report is written for the Board of the Dairy Company Tatua, and it mainly reviews the existing trade agreements and also the impact of TPP on the existing markets. Structure of this report includes different sections which answer different questions such as objectives of the CER & New Zealand China free trade agreements, benefits of these agreements to the society of NZ, disadvantages of these agreements to the society of NZ, how these agreements create wealth for different people, and impact of TPP on CER and New Zealand China Free Trade Agreement. This report also includes recommendations. Lastly, paper is concluded with brief conclusion.

Trans-Pacific Partnership – its objectives and countries involved

This section of the report defines the objectives of two different free trade agreements from NZ’s perspective:

The Australia – New Zealand Closer Economic Relations Trade Agreement is also referred as ANZCERTA or the CER Agreement, and this agreement is the most important bilateral free trade agreement. Generally, this agreement involves all the goods related to trans-Tasman as it also includes agricultural products and it is the first agreement which includes free trade in context of services. The main objective of this agreement is the creation of a World Trade Organization which consist Free Trade Area encompassing Australia and New Zealand. Following are the main objectives of CER agreement and these objectives are stated in Article 1 of the Treaty (DFAT, 1997):

• It helps in strengthen the trade relations exist between Australia and NZ.
• CER also ensure the development of relations between Australia and NZ in context of economy, and this can be done through mutually expansion of free trade in both countries.
• Trade barriers are eliminated by CER between both the countries in such manner which is both progressive and gradual, and this is done on the basis of accurate time table with minimum level of disruption.
• It also develops the trade between New Zealand and Australia on the basis of the fair competition conditions (NZ Foreign Affairs & Trade, n.d.).

This agreement is gone under three general reviews that are:

• It increase the attainment of free trade in goods meeting under the CER rules of origin, for the purpose of eliminating restrictions related to tariffs and quantitative on trade by 1990.
• It also increases the scope of agreement for the purpose of including trade in services.

Additionally, different elements of CER agreement from number of years have been amended and refined (NZ, n.d.).

New Zealand–China Free Trade Agreement is also referred as FTA and this agreement is signed in Beijing in April 2008 by NZ and China. Both the countries also concluded an Environment Cooperation Agreement (ECA) and a Memorandum of Understanding on Labour Cooperation (MOU). All these agreements are enforced on 1^st October 2008(NZ Foreign Affairs & Trade, n.d.). Objectives of this agreement are stated below:

• FTA ensures liberalization in the trade related to goods, and for this purpose it removes over time of tariffs by 96% related to traded goods and this amount is equal to annual duty which saves almost amount of $115.5 million on the basis of current trade.
• FTA also state the rules which determines the quality of goods in context of tariff cuts, and it also state the instructions to hostage the unfair trade or unexpected issues related to imported goods.
• FTA also covers provisions related to services, as it benefits the service sectors of New Zealand because they expand their commitments in education and environmental services.
• NZ also get the benefit from the provision which provides facility related to business travel for citizens of China and it also provides access to skilled workers from China in specific field only.
• NZ also get the benefit in context of investments, as they get enhanced protection for investments made in China. This provision also ensures the competency of NZ investors in comparison of investors from other countries. NZ investors get access to bind the third parties in arbitration proceeding if any breach is made by the government officials of China.
• FTA also makes efforts for improving the environment of business and also provides new opportunities for the business. This agreement also state the provisions related to the customs and cooperation, sanitary and phytosanitary measures, technical barriers to trade and intellectual property and it state the design for reducing the barriers. It also establishes the outline for collaboration to increase the benefit of the FTA. The main purpose is to make strong cooperative relationship and new opportunities of business for both the countries.
• FTA also contain the Mutual Recognition Agreement on Electrical and Electronic Equipment (EEEMRA), as this agreement facilitate the conformity assessments of large proportion of electrical and electronic products traded between the two countries.
• This agreement also establishes the mechanism for dispute settlement and also contains the protection for domestic regulatory and policy-making flexibility of both the countries.
• Both the countries also signed binding Environment Cooperation Agreement and a binding Memorandum of Understanding related to Labor Cooperation.

CER provides various benefits to the society of NZ, as it reduces the compliance cost and also improves the certainty for NZ investors by establishing the preferential marketing access and it also provides threshold for investments in specific business assets. This protocol eases the productive foreign investment in business Assets in both Australia and NZ. This protocol does not alter the existing regime of screening in context of sensitive lad and fishing quota (mfat, n.d.).

For the purpose of facilitate the NZ investors to make investment in business assets of Australia, CER set threshold at A$ 1.004 billion. This is the same threshold from which investors of US get benefit under AUSFTA. Therefore, it can be said that only investment which represents substantial interest in Australian businesses is worth A$ 1.004 billion and above require approval from the Australia’s Foreign Investment Review Board (FIRB).

As per the data, only few investments from NZ investors in non-sensitive business assets required approval as per this new threshold. Investors of Australia also seek to invest in the business assets of NZ and get benefit from the increased threshold. Only investments in which investors from both the countries buying 25% or more of a business and either that share is more than NZ$477 million, or the assets of the target investment are more than NZ$477 million need approval by the Overseas Investment Office (OIO). It must be noted that increased thresholds related to investments applied in case of important business assets only, but screening regime in context of sensitive land and fishing quota is not changed and applicable to Australian investors. However, if investors want to invest in specific business assets including sensitive land and/or fishing quota, then it is necessary that investment meets the required criteria for all of those categories of investment which required consent.

Ratification and withdrawal of TPP by the United States

Threshold limits of both the countries are indexed annually on 1^st January for the purpose of grossing domestic product, and these thresholds also ensured that they maintain their size in context of each economy. These thresholds were approved by the Prime Ministers of both the countries in the meeting held on 2009. The Australian threshold limit is similar to the threshold available to US investors under AUSFTA. Threshold of NZ is almost half in comparison of threshold set by Australia, and it reflects the differences in the size of the two parties’ economies. Additionally, CER also provides other benefits to the investors of NZ:

• Investors of NZ get benefit of national treatment in Australia, which means they treated in similar way as the Australian investors treated.
• NZ investors and their investments in Australia will get no less favorable treatment in comparison of investors from any third country with whom Australia may be enter into any agreement in future. In other words, NZ get the benefit of most favored nations.
• NZ investors and investments made by them in Australia does not fall under the rules which required investors to achieve the limit of compulsory exports, domestic content or technology transfer agents (Siddique & Chaterzee, 2002).

NZ also get some other benefits also, and these benefits are listed below:

• Application related to QIA screening regime for foreign investments also involve the sensitive land and fishing quota.
• CER also preserve the space for government for the purpose of legitimately regulate some specific situations, such as balance of payment crises or for providing protection to the human, animal or plant life or health.
• Exchange of letters in context of reservation of Australia on non-confirming measures at the regional level of government. Revised schedules are provided by Australia with the protocol which incorporates all regional measures which are non-conforming and this provide the benefit of transparency to the NZ investors.
• CER negative list schedules related to reservation provide high level of transparency to the NZ investors by listing only those sectors of the economy in which one or more core obligation does not applied.

Additionally, protocol provides important strategic and political benefits for NZ investors. It also shows the commitment of NZ to the bilateral relationship with Australia and it also maintains the position of CER as the most comprehensive trade agreement in the world. However, this protocol also serves as example for any future treaties and reflects the quality which can be reached in case of high level of ambition and integration are already present in the relationship.

NZ get various benefits from the removal of the over time of tariffs on 96% of NZ’s current exports to China, and this amount is equal to an annual duty saving of NZ$115.5 million based on current trade. Following are the advantages of FTA get by the NZ society:

• FTA eliminates the tariffs on over NZ$200 million which is worth of exports done by NZ.
• FTA also eliminated China’s tariffs of NZ$621 million related to current exports for the first five years, and this includes infant milk formula, casein, frozen fish, frozen fish fillets, methanol, animal fats & oils, apples and wine.
• FTA also eliminated China’s tariffs of NZ$77 million related to current exports for the first nine years, and this includes beef and sheep meat, edible offals, sheepskins and kiwifruit.
• FTA also creates special country-specific tariff quota for the wool of NZ, and this quota provides the benefit of initial duty free entry of almost 75% of average annual exports in the 2004–2006 period.
• By the end of the phase of tariff, tariffs on all but $80 million related to current trade will be eliminated.

NZ also get benefit from the expansion made by China in service sector which also includes services related to education and environment. It must be noted that NZ goods entered in China are required to be released within 48 hours of arrival and exporters may apply for advance rulings.

FTA also recognizes the rights of NZ under the WTO for the purpose of taking actions against unfairly traded imports from china and also contains prohibition against subsidies on export. NZ also get benefit in context of area of investment, as they get more protection in form of national treatment and also the position of ‘Most Favoured Nation’ (MFN) non-discrimination provision for the purpose of ensuring that investors of NZ remain more competitive in comparison of investors of other countries.

NZ investors get access to bind the third parties in arbitration proceeding if any breach is made by the government officials of China. As well there are some provisions which facilitate the communication between the two countries on the matters of investment (Mfat, n.d.).

Conclusion of Negotiations on Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

This section of the report states the disadvantages faced by NZ society in context of both the agreements.

Higher threshold for the investors of Australia stated in the protocol require the OIA to monitor the Australian investors utilizing the higher threshold for the purpose of ensuring that they do qualify as Australian investors. OIO also monitors the activities of foreign investments for the purpose of ensuring that investors from foreign countries complied with their obligations under the OIA. It is assumed that this monitoring will be able to enforce the application related to Australian investor related for higher threshold in effective manner. On periodic basis, OIA review the effectiveness of its monitoring systems.

Future evaluations will also include the considerations of the effectiveness of monitoring of investor compliance in context of higher thresholds available to investors of Australia. Some risk is also there that investments made in Australia falling between the thresholds of falling between the NZ$100 million and NZ$477 million, might be eliminated by the OIA and will be proceed in such manner as they did not require approval of OIA. However, it cannot be assumed as important risk because in last 25 years not even single application of Australian investor in NZ business assets is declined.

Therefore, it can be said because of CER NZ is not able to extend the category of investments which require prior approval from authorized institutions such as sensitive land, significant business assets and fishing quota. However, government also retains the flexibility in context of type of tests which are applied on these types of investments and also allowed the flexibility for future policy.

FTA states a special safeguard mechanism and also a requirement of mid-term interview for particular products of dairy which are considered sensitive by the China. However, impact of these mechanisms is limited because it applies only if activated and for limited period of time.

It must be noted that, liberalization in tariff is not applied for specific processed wool and paper products, and these products are almost equal to 4% of NZ’s current exports to China. China also maintained the WTO tariff quota rate for a range of primary products. However, these products are not exported by NZ to China. FTA also provide country-specific tariff quota (CSTQ) in context of wool and wool tops exported to china. Initial stage of quota equals to almost 75% of NZ’s current exports, and this is not as much as NZ wanted. Elimination of tariff by NZ’s on the import of china ensures effects of adjustments for import competing sectors.

New Zealand’s partnership with Australia – ANZCERTA

The FTA provides number of protections for the purpose of reducing these effects. Mechanism in context of bilateral safeguard is introduced by the FTA and under this mechanism China is allowed to impose additional duties on the products of the NZ if exports are causing serious injury to the Chinese industry.

Both CER and FTA provide new opportunities to the New Zealand, and they also make the relationship between the respective countries strong. Both the agreements provide framework which ensures economic and social benefits for the New Zealand. NZ witnessed significant growth in the economy and this growth is the result of further liberalization of trade, mitigation of tariffs, elimination of trade barriers, etc (Productivity, n.d.).

This agreement accompanied with other protocols, treaties, and arrangements result in further liberalization of trade between the two countries. In 1992, protocol related to trade in services was signed and in 1996 single aviation market was established. In 2009 it provides commitment to Single Economic Market agenda for the purpose of promoting mutual growth, competitiveness and prosperity. These together with other achievements in different areas provide number of benefits to the NZ, and some of these benefits are stated below:

• NZ is the trade dependent country, and economy growth of this country directly depends on the international trade and foreign investments. As per the data of NZ statistics, almost 10.6 % increase is witnessed in the Trans-Tasman trade of goods on annual basis. Exports of NZ to Australia are NZ$9.1 billion which is equal to almost 17.5% of total exports. FDI of Australia in NZ is almost 70% in 2014 that is almost NZ$53 billion. Presently, total of bilateral trade between the two countries is above AUD16 billion.
• NZ also get various benefits occurred from increase in trade, investments, and from elimination of transaction cost and this happen because of the harmonization of standards and profession qualifications, reduction in cost related to industry, less regulatory barriers. It also provides the benefit of fair competition because of the minimizing market distortions in trade in goods and more legal certainty.
• The Trans-Tasman mutual recognition Arrangement also allowed the free movement of goods and it provides benefit of cheaper and specialized workers. This agreement also creates new job opportunities and provides new goods and services at low cost (Acuity, 2017).

After CER, New Zealand signed biggest trade agreement with the China and this agreement is referred as FTA. FTA also provides different economic benefits to the NZ. Following are some economic benefits to NZ:

• FTA is the big achievement for NZ as it promoted idea of trade liberalization. It puts the NZ in advance position in comparison of other developed countries (Export.gov, 2017).
• NZ influence related to regional integration discussions will be increased as both China and NZ are active members of Asia Pacific Economic Cooperation (APEC) and the East Asia Summit (EAS) (Barber, 2014).

Additionally, FTA provide major economic benefit to the service industry of NZ, as services include very low share of NZ exports to China that is almost 13% only, but this share is increased by 83% in last five years. Two-way trade related to services is currently dominated by tourism and education. However, rage of services in exports is diversified in nature. Recently, education industry is considered as largest service export on part of NZ to China.

From last few years, short term visitors from China have been rapidly grown, and for NZ china become the fastest growing visitors market. From 2000-2014, almost 250000 visitors from China had arrived. It is estimated by NZ that this number reach almost 1million by 2020. In comparison of other countries, Chinese visitors spend more amount of money at their visits that is almost $4000 per person. Therefore, it can be said that service sector also get different benefits from FTA (Look me after, 2015; The treasury, n.d.).

Dairy industry of NZ is considered as primary beneficiary of FTA that it accounts almost NZD2.8 billion of the exports in the year 2012, and this growth is followed by the wood industry that is almost NZD1.2 billion and meat industry that is NZD412 million. There are number of ways, through which this fact is considered that primary industry will be the future source of NZ economy. However, this industry also face various issues also which cause great damage to the industry and organizations (Wheeler, 2014).

Objectives, benefits, and disadvantages of ANZCERTA

From last five years, various thresholds for tariff began to fall and it creates difficulties for some NZ exporters. Dairy sector of NZ face various crises and this cause damage to the reputation of NZ Inc. brand in the eyes of Chinese authorities and customers. Strategy of NZ related to China is not appropriate because it always cause different issues, and fails to utilize all the benefits of FTA. Rebuilding of trust must be primary objective of NZ, but things do not seem like this. Failure of officials of NZ in understanding the new Chinese customs certification documents resulted in detainment of 30000 tons meat that is almost equal to NZD100 million’s in the northern port of Dalian during the year 2013.this type of incident also happens with the milk products in similar year.

This requirement of rebuilding the trust also extends into the sensitive area of food safety. In January, there is DCD contamination in milk manufactured by Fonterra. However, DCD contamination is considered as Alarm and the botulism scare seriously dented the NZ Inc. brand and because of all this retailers of China is not interested in selling NZ dairy products because customers demand more safe products from other exporters (NZIER, 2017).

It is difficult to determine the damage caused to NZ brand, but one thing is clear that NZ milk has lost its image in front of the Chinese customers. It is the time to rebuild this trust on the basis of safety standard of NZ because one child policy in China makes the Chinese parents more sensitive about their children’s food safety. This fact is actually problematic for the dairy producers of NZ, especially for the small dairy companies because milk products have profitable and big market in China. There is terrible record of Chinese dairy products after the scandal of 2008 under which almost 13 infants died as a result of the melamine infection in the formula, and dairy products of other exporters capture big and good market in China (Dcanz. N.d.).

After considering the above facts, it can be said that dairy exporters of NZ witnessed significant growth in the Chinese market, but because of inability of the products and government officials there is great loss of reputation. Strategy of NZ is not that much capable as it take all the benefits of FTA. Therefore, there is clear to need to make amendments in the strategy (Lee, n.d.).

Threshold and benefits for NZ investors under ANZCERTA

On the other hand, CER also provides various benefits to the dairy industry of NZ because this agreement also ensures free flow of trade in Australia. CER ensures low tariff, elimination of trade barriers, trade liberalization, etc. however, Australian dairy farmers are not ready to get involved with the NZ through the CER agreement, because of the fear that they are not able to compete with them (Mbie, 2017).

On the basis of this fact, Government of Australia provides unequivocal commitment to the dairy industry:

• Consultations and discussions are arranged between the industry and the government before signing any agreement related to dairy industry in context of CER with the New Zealand.
• No arrangements will be signed with the New Zealand in such way which results in the damage to the domestic market of the Australia for dairy products.
• The Australian dairy industry will not be disadvantaged by unfair competition from New Zealand (Department of foreign affairs Canberra, n.d.).

These issues arise because of the different culture and different nature of the dairy industries of both the countries. Australian dairy producers find it difficult to compete with the dairy producers of NZ because of the evolutionary track of the industries of both the countries. Australia is not as homogeneous, and the NZ is split geographically and face issues related to Federal and state relationships. It must be noted that Australian Dairy Corporation (ADC) is a regulatory body and this body witnessed changes considerably over the 1970s and 1980s. Before that this country is producer dominated because of which both NZ and ADC adopt similar view related to any issue, but still there are some big differences between the two (Massey, n.d.).

After analyzing the agreement signed by New Zealand with Australia that is Closer Economic Relations (CER) and with the China that is New Zealand China Free Trade Agreement, it can be said that these agreements directly affect the operations and business strategies of Tatua. It becomes necessary for the company to review all these trade agreements before expanding their business and take any other actions related to export. It must be noted that, there is one more agreement that is TPPA which also affects the operations of the company because this agreement has direct impact on the existing markets and it finds new opportunities for the company.

Tatua can consider different markets of TPP members to expand their business and must frame accurate plan to enter into these markets. FTA and CER already opened the door of Australian market and Chinese market for Tatua. All these agreements provide various benefits to the company be liberalizing the trade, reduce tariff, low cost of transportation, elimination of trade barriers, etc.

NZ signed different free trade agreements with different countries and all these agreements increase the capacity of NZ in primary industries. Dairy industry of NZ get various benefits from these trade agreements and these benefits are already stated in above sections. Contribution of this industry is big in the economy of the country.

New Zealand-China Free Trade Agreement – Objectives and benefits

Tatua Co-operative Dairy Company is an export oriented company, and this company exports almost 94% of products to other countries that is more than 60 companies across the globe. Because of vast expansion of business in other countries, it is necessary for organization understand the impact of trade agreements and how they can capture the market (Ciggi, 2014).

The former Prime Minister was very serious in context of trade agreements, and because of this government of NZ entered into different trade agreements with different countries such as CER, FTA, and now TPPA.  It takes long time to sign the FTA because of the complex issues under the FTA. However, after the introduction of TPPA, provisions and measures of both the agreements that are FTA and CER come into question. It also put some positive impacts also as it opens the trade door of those markets which are not yet covered by the FTA and CER.

TPPA does not meet all the expectations especially in dairy sector but it improved the market access in some specific sectors and provide new opportunities of trade. In other sectors such as beef market in Japan, NZ stands on the same position as other exporters who signed FTA. Even dairy market access is improved in comparison of previous situation. In any situation, results of TPP are greater as it provide best benefits of exports such as elimination of tariff by 93% on NZ exports which amount to saving of $259 million each year (Jacobi, 2016; Meadows, 2016).

This type of benefits also effect in other ways such as it saves the cost of the company which ultimately reflects in low cost to the consumers. Negotiators of NZ would secure the deal without requiring the major adjustments in context of NZ. This achievement is really big for small economies because they offer very little to the biggest partners of trading. Therefore, it can be said that TPPA has great impact on FTA, because FTA deliver benefits from the first day of enforcement but its shows with the time. However, TPPA accelerates the growth from the beginning and this growth is reflected at initial stage. FTA gives rise to an extra ordinary increase of market in two forms as it reduce the tariff and remove the barriers but TPPA only ensures increased threshold which seems less effective in comparison of FTA. However, it must be noted that similar situation happen with CER also.

Removal of tariffs and advantages for NZ society under FTA

On the basis of numbers, TPP is considered as big achievement because in this new set of rules applied to 36% of the GDP of the world which also includes first and third largest economies and 812 million peoples. It also affects almost 40% of New Zealand goods exports, 47% of New Zealand’s services exports and 75% of New Zealand’s foreign direct investment. It covers almost $28 billion amount of trade of NZ. In other words, TPPA also deliver the measures of FTA with other five partners with which NZ does not have any agreements (Jacobi, 2015).

From the point of view of Tatua, it can be said that TPPA does not have very much effect on the dairy sector. However, this deal is considered as inadequate for the dairy industry of NZ. Terms of dairy trade in this agreement are not beneficial for NZ, and it is not possible to sign the TPPA if such measures are not amended. TPPA only provides the 2% benefit to NZ economy each year and contribution of dairy industry is less (Hutching, 2015; New China, 2015).

Negotiators of NZ are failed to get the similar market access for the dairy sector as they did for other primary markets and this factor breaks down the hope of dairy industry players, and leave them to expect any better deal in the future.

PESTEL for the dairy industry is stated below:

• Political- government policies and threshold limits.
• Economic- this aspect is affected from the purchasing power of the users.
• Social- obesity in context of milk and other dairy products.
• Technological-infant formula used by exporters and how they preserve these products.
• Environment- heat factors and temperature control for dairy products.
• Legal- dairy manufacturers must comply with the measures of trade agreements.

Conclusion:

After considering the above facts, it can be said that free trade agreements like CER and FTA with China or multilateral one like TPP provide number of benefits to the involved countries. Partnership with other countries provide large number of opportunities for New Zealand, and this agreement help the NZ to expand their activities in new destinations of exports in context of their business. This agreement also help by creating the jobs and result in better standard of living for all the citizens of NZ. At same time, it protects the right of government to regulate in the public interest and the unique status of the Treaty of Waitangi.

However, it can be said that all these agreements provide different benefits to the NZ and iits traders.

On the basis of above analysis and assessment, following recommendations are stated for the tatua and dairy industry:

Dairy industry:

Dairy producers of NZ continually face the issue related to tariff on the maximum number of dairy products which are imported in the markets which are highly protected. It is recommended to DCANZ to analyze the TPP deal in proper manner for dairy products for the purpose of ensuring effective discussion with the government for the purpose of eliminating distortion from the global markets in near future.

Other benefits and arbitration provisions under FTA

Integration of trade also contributes in the enhancement of living standard for maximum population by providing new jobs and opportunities. It is recommended to the dairy industry to set a link between industry benefit and social responsibility while framing their business strategies in the new markets and specially in the countries like Vietnam, china ,etc. because these countries have high level of social issues.

Tatua:

It is recommended to the company to analyze this report and present it in its upcoming Board Management meeting and consider below stated phases:

• Company must identify the opportunities in new markets by using different tools such as SWOT, cost and benefit analysis and stakeholder analysis. As these tools help the company to understand the target market in better way and prioritize the segments of different market.
• For the purpose of capturing the target markets it is necessary to develop strategy at every level that is at corporate level for ensuring competitive advantage, etc.

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